Dunlop

Wednesday, 20 November 2013

While the P.K Ruia Group had been making false submission before the Supreme Court of India for restarting the work at Dunlop India's factories, however one finds that their deeds and actions are contrary to their words.

Dunlop India's factory located at Kolkatta and Chennai are not in operation since last 13 years or more and the Ruia management had in these past years have not just siphoning cash out of Dunlop India but gradually siphoning the business of Tyre's to one of their subsidiary Dunlop India Tyres Pvt Ltd.

Below is an extract of the Website of Ruia Group which clearly indicates the above act of Siphoning the Tyre business to Dunlop India Tyres Pvt Ltd which is a distinct and separate entity in which Dunlop India Ltd has no interest or any stake and is solely owned by the Ruia Group.

This is a classic example of the rampant corruption prevailing in Corporate India.

India is witnessing a huge growth in the demand of cycle-tyres in recent years. With an aim to share the growth pie, the Ruia Group in 2010 acquired a facility in Himachal Pradesh (India) and introduced state-of-the-art technology for manufacturing a wide range of high-quality cycle-tyres in the plant. Subsequent to the thorough refurbishment process, the company was renamed as Dunlop Auto Tyres Pvt. Ltd (DATPL).

DATPL’s bicycle-tyres bearing the brand DUNLOP have been readily consumed by the quality-hungry segment of the market. DATPL has increased its market presence further with tubes, repairing solutions, chains, rims and other products related to bicycle. The company has planned to manufacture tubes for motor cycles and other two-wheelers.

Monday, 18 November 2013

" You can't fool everyone all the time" but Pawan Kumar Ruia group is successfully fooling everyone including creditors, employees, banks, shareholders, RBI and also the courts of India all the time. To see How ? read more.

Pawan Kumar Ruia, the chairman of Kolkata-based Ruia group, in an interview given to one leading financial newspaper, said that he is quite certain that his company - Suryamani Financing (a 20-year-old NBFC) is eligible to set up a bank. Suryamani Financing has applied for a banking licence before the Reserve Bank of India (RBI).

Now, this news might be a jolt to Ruia's confidence or may be an eye-opening piece of detail for RBI before it decides its list of applicants.

In its preliminary investigation, the enforcement directorate (ED) has found traces of "money laundering andhawala transactions in the book of accounts" in one Ruia group company.

In its confidential report, which is exclusively with Headlines Today/Aajtak, ED has given complete details of how Falcon Tyres Ltd and Dunlop India Ltd was "money laundering" and almost taken its shareholders for a ride.

In 2008, ICICI Bank had given a loan to two Ruia companies-Shalini Properties and Developers Pvt. Ltd and SPR Resorts Ltd-against the mortgage of a 58.5-acre plot in Athipattu village near Chennai. Dunlop India Ltd (DIL) sold this plot in 2007 to a subsidiary, Dunlop Properties Pvt. Ltd, which in turn mortgaged it a year later with ICICI Bank for credit facilities obtained by two Ruia Group companies. Substantial shares of Falcon Tyres Ltd (FTL) and DIL were pledged as additional collateral with ICICI Bank. The loan amount was around Rs.575 crore.

After a long legal battle, the Kolkata High Court had passed a winding up order in 2012 - wherein had exposed the fraud committed by Pawan Kumar Ruia (PKR) group and ordered the properties to be transferred back to DIL.

According to investigative officers, with the fear that high court order would make ICICI Bank insecure and force them to use the second collateral by invoking the shares of FTL and DIL. If invoked, ICICI Bank would have controlling stake and power to change the management in these companies.

"So to overcome this threat, PKR group had planned money laundering to the tune of Rs.200 crore," an officer said.

Modus operandi was as usual. As per the investigation report, Manali Properties and Finance Pvt Ltd - a PKR group company created a loan of Rs.165 crores in the book of accounts of FTL. Instead of asking the company to repay, PKR assigned this loan to three hawala companies i.e. Suncap Commodities Ltd, Regus Impex Private Ltd and Salputri Commerce Pvt Ltd.

The deed of assignment had been induced with conversion clause wherein Falcon Tyres Ltd could issue new shares worth Rs.165 crores to these three companies instead of paying back the loan. "As per the plan - it reduced the collateral security pledged with ICICI bank to minority and simultaneously managed Rs.165 crores hawala and money laundering between Manali Properties and the three companies," investigative officer said.

In addition, an idential model was executed with Dunlop India Ltd, wherein Dunlop shares of Rs.60 crores (appox) were alloted to these three companies. Thus, the total transactions under ED investigation with the three companies amounted to Rs.204 crores.

ED in its report said, "It needs to be enquired as to how the company with the paid up capital of Rs.1.11 crore could afford to give a loan to the tune of Rs.144 crores on interest free basis. Surprisingly, the loan is given to a group company. If the sources of funds at Manali Properties are investigated this whole transaction would prove to be a circular transaction."

As per the investigation details, it is also clear that the company chooses to issue preferential shares against the loan due to Manali, especially when there was no demand upon them to pay the loan, and the loan amount was not carrying any interest burden. "On the contrary, by issue of shares of Rs.144 crores, the management (which has taken decision to issue shares) diluted their shareholding, wherein they become minority shareholder after the issue of shares. Whereas, the three unknown shell companies having no presence or expertise in the tyre industry held majority stake of the company, without claiming any seat on the board of the company."

Interestingly, DIL was already ordered to be wound up and it would be evident that the transaction between Dunlop. The companies buying shares of DIL is nothing but an accomodation for in the books. An investigative officer raised the question that how can any company's share have value once it is ordered for winding up?

Shockingly, as per the report, even in the case of a group company i.e. M/s Stephens Financial Services Pvt Ltd, loans which were receivable from DIL were also assigned around the same time to the three said companies using the same modus operandi.

Report concludes, there has been huge transfer of assets/loans to benami and hawala companies of the tune of Rs.2000 crore wherein assets of Public Ltd were transferred to shell companies and further book entries were passed for the payment of the diminished transaction value, thus no monetary transaction or gain to the transfer or company.

To get an official reaction of PKR, a detailed queries had been sent to Ruia group, which remain unanswered.

The Supreme Court on Monday stayed the Calcutta High Court order on winding up of ailing tyre manufacturer Dunlop India. However, it asked the country's oldest tyremaker not to sell or create any third-party rights in its properties.

A bench headed by Justice Gyan Sudha Mishra stayed the HC order that directed the company, which had set up its first factory at Sahaganj near Calcutta in 1926, to wind up and pay off its creditors.

The HC had also directed the official liquidator to take 'immediate possession' of the assets of Dunlop India, which has facilities in Sahagunj in West Bengal and Ambattur in Chennai. Neither of these has been in operation since 1998.

The order came after Dunlop argued that another bench of the apex court had ordered status quo in February in a related petition filed by Kanti Commercials.

Pawan Kumar Ruia, the chairman of the group, had taken over Dunlop from the late Manohar Rajaram Chhabria's Jumbo Group in 2005. By then, it was already in considerable financial stress and was seeking protection from creditors.

Both the factories of this one-time blue-chip company, at Sahagunj in Hooghly and Ambattur in Tamil Nadu, are closed now.

Senior counsel Abhishek Manu Singhvi, appearing for the Ruia group company, claimed that the management is genuinely trying to revive and run the factories as it has already cleared dues to 10 out of its 16 creditors, and repaid R39.73 crore out of its total debt of R52 crore between July 2012 and January 2013. Besides, Dunlop had deposited R10 crore in the company court, he added. According to the firm, the remaining claims were under bona fide dispute and pending in the courts, and required to be established in a competent judicial forum.

Monday, 15 April 2013

Dunlop India shareholders are cheated and looted by the management of the company by stripping company's assets worth Rs 2600 Crores (Rs 26000 Million) and selling them to their own group companies for no consideration and thus has deprived millions of its share holders of their wealth, The Director's and Promoters have not only cheated the Shareholders but also its workers and creditor's by not paying them their legal dues, these are not my views, the Judgement of the Hon'ble High Court of Calcutta states so, based on the evidence placed on record before it.But what is more alarming is that a handful of people are indulging in daylight robbery while millions of people are mute spectators to this whole episode.

A copy of the said Judgement H.C. Calcutta by Hon'ble Justice Sanjib Banerjee is appearing in the Home page of this blog and the PDF version is also download able and can be viewed, The said Judgement is a must read.

Or

The shareholders of Dunlop India Ltd are suggested to make on-line complaints to initiate criminal proceedings against the Promoter and Directors of Dunlop India to SEBI and to the Ministry of Corporate affairs.

The shareholders of Dunlop India Ltd are requested to participate in large numbers by lodging complaints and send emails to SEBI and the Ministry of Corporate affairs.to prevent any further damage to the company assets by the Promoters and the Directors of the company.

Wednesday, 27 March 2013

It started in Belfast, Ireland, in 1888, with an idea that forever changed the way the world rides. The road has led from the racetracks of Europe to America's most sophisticated tire-making labs. The journey has been epic. Take a look, and see how we arrived at a tire brand like no other.

1888 to 1922 BORN READY TO ROLL

1888 John Boyd Dunlop's son is struggling to ride his tricycle. He is riding it because he has a heavy cold, for which a doctor has prescribed a very unusual cure: cycling. To make the child's ride more comfortable, Boyd fits his tricycle with tires made of canvas bonded with liquid rubber. Boyd patents what turns out to be a very big idea.

1823 TO 1837 EARLY LEADER

1889 Cyclist Willie Hume is the first to adopt Boyd's invention for racing, winning a slew of events. It's the start of Dunlop's legendary run of racing success.

1902 Dunlop wins the grueling Paris-Vienna race.

1922 First Dunlop tire using steel rods and canvas casing provides triple the service life of other tires used until then.

1923 First Grand Prix victory.

1924 First victory in the 24 Hours of Le Mans, known as the Grand Prix of efficiency, in which race teams have to run 24 hours while conserving tire, fuel, and braking materials.

1927 At 207 mph, Captain Malcolm Campbell breaks land speed record. He'll shatter it again in four years later. Both times he rides to the record on (you guessed it) Dunlop tires.

1937 Winning the 24 Hours of Le Mans seems to be habit-forming. Dunlop does it for the tenth time

1951 TO 1968 RACING DYNASTY

1951 Dunlop and Jaguar team up for an unprecedented run of dominance in the 24 Hours of Le Mans, winning in 1951, 1953, 1955, 1956, and 1957.

1958 This year marks the start of a period in which Dunlop more or less owns Formula 1.

1962 High speeds. Wet roads. Tires losing grip. "Aquaplaning" is an unexplained phenomenon until the Dunlop Technical Team identifies the cause and starts developing the cure.

1965 Let's make it seven consecutive Formula 1 crowns.

1968 The first ever London—Sydney Marathon is held. In terms of endurance, it's sick: 16,000 kilometers across Europe, Asia, and Australia, over winding passes, surfaced roads, and sandstorm-battered deserts. In terms of winners, it's Dunlop

1988 TO 1999 ERA OF FIRSTS

1988 We celebrate our 100th birthday in style, with a 1-2 finish at Le Mans.

2003 We become the sole tire supplier to the British Grand Touring Championship.

2007 We introduce "Touch Technology™," the summation of our tire-making expertise over the past 100-plus years, to give drivers a better feel for the road.

2008 To improve steering response, we develop the first tire with Kevlar® pulp inserts in the sidewall. The name on the sidewall: Dunlop SP Sport Maxx® TT.

2008 Still at it (only greener): Audi A4 Quattro equipped with Dunlop SP Sport Maxx® TT tires sets world speed record of 204.7 mph for a climate-neutral fueled vehicle. In the same year, we introduced the Enasave 97, a tire that comprised of 97% fossil-free material.

2009 TILL DATE FASTWARD

2009 The launch of QuattroMaxx tires inspires racetrack performance for SUV's. In October '09, a QuattroMaxx-equipped Porsche Cayenne sets a new lap record for SUV's at the Nurburgring Nordscleife (a.k.a. "the Green Hell.")

Dunlop India was enjoying an interim stay on the winding up order until February 18

Division Bench vacates stay on Dunlop winding upDunlop India was enjoying an interim stay on the winding up order until February 18

Kolkata, Feb 18 (CMC) A Division Bench of Calcutta High court today vacated the stay on the winding up order of the beleaguered tyre-maker Dunlop India.
The Division Bench comprising, Justice Asim Banerjee and Justice Shukla Kabir Sinha, asked the official liquidator to take possession of all the assets of Dunlop India as per single-judge bench order on winding up of the company. The court today also asked the local administration in West Bengal’s Hooghly and Tamil Nadu’s Ambattur, where two plants of Dunlop are located, to cooperate with the official liquidator in this regard.
The official liquidator will carry on assessment of the company’s assets until any further order. A spokesperson of Dunlop India said, “We are yet to study the order. We are not in a position to comment at this moment.”
Dunlop India was enjoying an interim stay on the winding up order until today, after the company deposited Rs 10 crore with the court.
Earlier, on January 31, Justice Sanjib Banerjee of Calcutta High Court had ordered winding up of the company. It had directed the official liquidator to take immediate possession of all of the company’s assets and books of records, following an application from a Kerala-based partnership firm EV Mathai and Sons and many other creditors of the company.
Dunlop India used to enjoy a safeguard from its unsecured creditors under a state Act — West Bengal Relief Undertakings (Special Provisions) Act, until 2010. However, the relief undertaking status was withdrawn by the erstwhile Left Front government later. Mamata Banerjee-government too did not renew it.
Also, there has been no operation at both Sahagunj (West Bengal) and Ambattur (Tamil Nadu) plants of the company for over a year.